Wrap Text
Unaudited interim condensed consolidated financial results for the six months ended 30 September 2020
Capital Appreciation Limited
Incorporated in the Republic of South Africa
Registration number: 2014/253277/06
JSE share code: CTA ISIN: ZAE000208245
"CAPPREC" or "the Company"
Unaudited interim condensed consolidated financial results
For the six months ended 30 September 2020 and cash dividend declaration
- Revenue R323.7 million up 15.0%
- EBITDA R81.6 million up 20.2%
- Trading profit R84.2 million up 23.4%
- Headline earnings R54.2 million up 7.8%
- EPS 4.45 cents up 12.9%
- HEPS 4.45 cents up 29.7%
- Cash flow from operations of R65.7 million (September 2019: R20.1 million)
- Interim dividend of 2.50 cents per ordinary share (September 2019: 2.25 cents per ordinary share)
- R488 million cash available for reinvestment
Operational highlights
- Accelerating digitalisation and electronic payments
generates strong demand for CAPPREC's services
- Payment terminal sales increased by 26.6% to R125.3 million
- The number of terminals sold period on period grew by 17.6%
- The number of terminals in the hands of customers now
stands at 202 000 (September 2019: 154 000)
- Significant progress in Android platforms, certifications,
and roll-out
- Annualised Gross Transaction Value (GTV) in Payments
Services exceeding R5.6 billion, up 14% since March 2020
- Synthesis' Cloud offering and AWS partnership continue to
strengthen
- Synthesis won the AWS' Sub-Saharan Africa Social Impact
Partner of the Year Award for the development of GovChat
- Group investment to support growth continues
Current year performance
All of Capprec's business units performed well in this
period of the most severe lockdown restrictions under
the COVID-19 pandemic. Capprec continued to grow its
client base of blue-chip, well-capitalised institutions in the
financial, retail, and telecommunications sectors. Terminal
growth continued and the introduction of Android-based
terminals in the South African market progressed well.
The escalating demand for digital, cloud-based and data
services has led to a strong growth in fees and is creating
numerous opportunities for Synthesis. The growth in
annuity-based income and geographic diversification are
progressing steadily. Cash generation remained strong.
Dividends
The Board has pleasure in announcing that an interim
dividend of 2.50 cents per ordinary share has been declared
for the six months ended 30 September 2020 (September 2019:
2.25 cents per ordinary share).
We note the following:
- Dividends are subject to dividends withholding tax.
- The payment date for the dividend is Monday, 28 December 2020.
- Dividends have been declared out of profits available for distribution.
- Local dividends withholding tax is 20%.
- Gross dividend amount is 2.50 cents per ordinary share,
which is 2.00 cents per ordinary share net of withholding tax.
- CAPPREC has 1 310 000 000 ordinary shares in issue at the declaration date.
- CAPPREC's Income Tax Reference Number is 9591281176.
The salient dates relating to the dividend are as follows:
Last day of trade cum dividend Monday, 21 December 2020
Shares commence trading ex-dividend Tuesday, 22 December 2020
Dividend record date Thursday, 24 December 2020
Dividend payment date Monday, 28 December 2020
Share certificates for ordinary shares may not be dematerialised
or rematerialised between Tuesday, 22 December 2020 and
Thursday, 24 December 2020, both days inclusive.
Short-form notice
The contents of this short-form announcement are the
responsibility of the Board of Directors of the Company.
Shareholders are advised that this short-form announcement
represents a brief summary of the information contained in
the full announcement, published on
https://senspdf.jse.co.za/documents/2020/jse/isse/ctae/HY2021.pdf
and on CAPPREC's website www.capitalappreciation.co.za.
The full announcement is available for inspection at the
registered office of the Company during business hours and at
no charge. Investors and/or shareholders may request copies of
the full announcement by contacting the Company Secretary,
details of whom are set out below.
The directors of CAPPREC take full responsibility for the
preparation of this short-form announcement and the financial
information has been correctly extracted from the underlying
unaudited interim financial statements.
Any investment decisions by investors and/or shareholders
should be based on a consideration of the full announcement
as a whole and shareholders are encouraged to review the full
announcement as directed above.
For and on behalf of the Board.
Michael (Motty) Sacks Michael Pimstein
Chairman Joint Chief Executive Officer
Alan Salomon Bradley Sacks
Chief Financial Officer Joint Chief Executive Officer
Johannesburg
2 December 2020
For a more comprehensive analysis of CAPPREC's results and
outlook, please refer to www.capitalappreciation.co.za
Registered office:
1st Floor, 61 Katherine Street, Sandton, 2196
Directors:
MI Sacks# (Chairman),
MR Pimstein* (Joint Chief Executive),
BJ Sacks* (Joint Chief Executive),
AC Salomon* (Chief Financial Officer),
MB Shapiro*, B Bulo#, KD Dlamini#, JM Kahn#,
EM Kruger#, R Morar#, VM Sekese#, CL Valkin#
* Executive, #Non-executive
Company secretary:
PKF Octagon,
PeterKatz@PKFoctagon.com
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
Sponsor:
Investec Bank Limited
Auditor:
Ernst & Young Inc
Date: 02-12-2020 07:05:00
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